THE Wairarapa Age MORNING DAILY. TUESDAY, JULY 5, 1910. A SCHEME FOR RAILWAYS.

Wairarapa Age, Volume XXXII, Issue 10032, 5 July 1910, Page 4

THE Wairarapa Age MORNING DAILY. TUESDAY, JULY 5, 1910. A SCHEME FOR RAILWAYS.

New Zealand requires morerailways. There is no one who will dispute the fact As a community we agree in most remarkable manner as to our needa, but the capacity of Government to meet the needs of the J people to an adequate extent has been demonstrated more times than 'we care to mention on the present occaJ.sion. The Government have,, however, evolved a new measure—it is known, as guarantee railways, and if the legislative measure is properly prepared it would prove extremely valuable when attempts might be made to give practical effect to it. . The new method referred to is described as being that of.the guarantee system of railway extension. The exact details of the scheme I have not yet been communicated to ! the public, but we have no hesitation in saying that some scheme of the kind could be adopted with great advantage to the liominion. We are committed* and' in our opinion very rightly committed,.-to'the principle of State railways; but we entirely fail to see because this is-sov. that the people should not be allowed to assist in. tha. conatuuetion. o£ Eailway.s.. kj»

the people's money that is invariably used; the precise form in which it is really used to advantage depends entirely upon the worth of the particular scheme propounded. All that is essential is that the State should have control. Complete control of the railways is really the essence of the principle of State ownership of railways. Some years ago, we endeavoured, so far as in us lay, to attract attention to the action of the Government in accepting an advance from the proprietors of the great Waihi mine, which enabled the then finish with the utmost speed a most important branch railway. At the function held in connection with the opening of the ! Paeroa-Waihi railway, that shrewd ;and eminently practical statesman, the late Mr Seddon, in the course of a speech, gave it to be understood, in general terms, that whenever similar offers were forthcoming the acceptance of the Government could be relied upon. We then sag-,. > gested that; Borne similar scheme might be evolved in connection with the proposed Masterton-Waipukurau branch line of railway, but though the suggestion was favourably commented upon in certain quarters, nothing farther resulted. * * # # *

Id the New Zealand Times of yesterdayjthe following paragraph was published:—"lt is the Government's intention to legislate this session providing for the guarantee method of railway extension. As already indicated by the Prime future railway extensions will have to show piomise of a return of three and a half per cent, upon the capital ;if they • are fto be made {by the State. Unless this is infistedupon, either a less vigorous Dohcy of construction or a very great increase in freights would have to be made to provide a reasonable return over the whole system. . If local faith in a new railway's [prospects is greater than thai of the Governments advisers, the line can be provided, according to the proposed measure; upon receipt of a local guarantee to bear any loss for a term of years if the receipts do not produce the minimum return of 3| per cent, The security for this will in,all probability be the same as for a local loan, and the new Bill will provide a method by which any deficit may be met annually bj a special rate over the locality benefited by the line." We assume that the paragraph is • substantially correct, and if our assumption is,well grounded it is evident that the Government are contemplating the launching of a scheme that contains [vast possibilities in the way of railway extension. The proposal does not involve the finding of the money for the Government by, say, taking up Government debentures, bearing a reasonable rate of interest, and redeemable after a specified period, but it means that where people are prepared to rate themselves, and to pay that rate if necessary/' they can enjoy a railway when it is deemed by them that they urgently require it, In its skeleton form the proposal is both praiseworthy and progressive lin character. We trn-t that the Government do intend to take action in the matter, and that the legislation relating thereto will be in keeping with the merits of the scheme.